The nominal return on your investment

Assignment Help Financial Management
Reference no: EM13848398

You want to have $6 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 9 percent and the inflation rate is 5.4 percent.

What real amount must you deposit each year to achieve your goal?

Reference no: EM13848398

Questions Cloud

Multiple owner-publicly traded corporation ownership model : Two years ago, Statesboro was selected as the location for the newest NFL team, the Georgia Peach Bums. The Peach Bums have a multiple owner/publicly traded corporation ownership model. As part of this model, the investors purchased 25,000,000 shares..
Create cash flow statement and statement of retained : Can someone please help me create a cash flow statement and statement of retained earnings in Excel WITH formula?
Calculate the macaulay duration-macaulay convexity : Calculate the Macaulay duration, Macaulay convexity, and dispersion of a 10-year bond with semiannual coupons paid at 6% per year earning an annual effective yield of 11%.
The relationships between user forms and reports : the relationships between user forms and reports
The nominal return on your investment : You want to have $6 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 9 percent and the inflation rate is 5.4 percent. What real amount must you deposit each year to achieve your goal?
Time value of money relevant to retirement planning : How is the time value of money relevant to retirement planning? Discuss the TVM in terms that a non-financially savvy couple in their mid-forties could understand.
All other ratios-including dividend payout ratio : Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, and ships them to its chain of retail stores. Sales for 2013 were $350 million, while net income for the year was $10.5 million. Upton paid divid..
What are the advantages of forming a limited liability : What are the advantages of forming a limited liability company?
What business licenses does a small business need : What business licenses does a small business need?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the cost of the stock alternative

Velcro Saddles is contemplating the acquisition of Pogo Ski Sticks, Inc. The values of the two companies as separate entities are $21.9 million and $11.9 million, respectively. Velcro Saddles estimates that by combining the two companies, it will red..

  Company announced that future dividends will be increasing

Ace Hardware paid an annual dividend of $1.25 per share last month. Today, the company announced that future dividends will be increasing by 2.5% annually. If you require a 11% annual rate of return, how much are you willing to pay to purchase one sh..

  Present and future values and expected returns

Critically reflect on the importance of present and future values. What factors must be considered when calculating present and future values? What other qualitative factors play into present and future value decisions? Perhaps you have opportunities..

  Income statement showed depreciation expense-net capital

Rotweiler Obedience School’s December 31, 2013, balance sheet showed net fixed assets of $1,785,000, and the December 31, 2014, balance sheet showed net fixed assets of $2,160,000. The company’s 2014 income statement showed a depreciation expense of ..

  Find the future values of these ordinary annuities

Find the future values of these ordinary annuities. Compounding occurs once a year.Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

  Capital expenditure that requires an initial investment

Payback period Jordan Enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.

  Define large sales of stockpiled gold by foreign governments

Suppose inflation is expected to increase the cost of producing gold by 10% a year but the price of gold does not change because of large sales of stockpiled gold by foreign governments.

  What would be the annual cost of jet fuel

Jet fuel: 32% of operating expenses per ASM as reported in most recent annual report, operating expenses per ASM (cents) = 12.5, number of ASM per year is 58055805 ASM. What would be the annual cost of jet fuel if Southwest Airlines offer three fligh..

  What is the approximate future value

What is the approximate future value of $1,000 to be received each year for 15 years assuming an interest rate of 10%? How many years would it take $1,000 to grow to $5,000 assuming an annual interest rate of 15%? At what interest rate would $1,000 g..

  Prepare a depreciation schedule for bow valley

Bow Valley Kitchens purchased new production-line machinery for a total of $44,500. The company expects the machinery to last 6 years and have a residual value of $2,500. Using the sum -of-the-year's digits method, prepare a depreciation schedule for..

  Period if the interest had compounded annually

Travis invested $9,250 in an account that pays 6 percent simple interest. How much more could he have earned over a 7-year period if the interest had compounded annually?

  Common stock-risk-free rate and market return

King Farm Manufacturing Company’s common stock has a beta of 0.61. If the risk-free rate is 3.44%, and the market return is 5.95 %, calculate the required return on King Farm Manufacturing Company’s stock.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd